INNOVATIONA Changing World

INVESTMENT CASE

INNOVATION

Innovation is becoming core in many industries, allowing companies not only to reduce costs thanks to automation (artificial intelligence, robotics), but also to come up with new products, enjoy higher pricing power (smart products) and to develop new business models (sharing economy)

This digital evolution has the potential to reshape markets faster than perhaps any force in history, with the spotlight being currently on the Internet of Things, virtual / augmented reality, artificial intelligence, robotics, medical devices

The Innovation theme gathers our top ideas among innovative technologies that are impacting current businesses and transforming the economy

The investment universe is naturally composed of Tech, Biotech and MedTech players, it can also include more traditional companies whose business model shifts thanks to innovation

THE FINAL STAGE OFTECHNOLOGY EVOLUTION

TECHNOLOGY ADOPTION HAS
ACCELERATED OVER THE YEARS

The rate of technology adoption has materially accelerated over the years as costs have been going down and as technology has become more user (and developer) friendly

Consumers now have an open mind when it comes to technology, with many of them being even eager to try new technologies

Source: Michael Felton, The New York Times

INNOVATION IS BECOMING CORE IN ALL
INDUSTRIES AND FOR GOVERNMENTS

Innovation is not exclusive to consumer electronics and healthcare industries anymore

In traditional industries, innovation emerges as a way to confront rising competition from. Low-cost countries and products and to drive growth

The cloud and IoT are major breakthroughs

TECHNOLOGY IS BECOMING UBIQUITOUS

The self-lacing technology from the 1989 “Back To The Future 2” movie is now real. Smart apparel is on its way. As are smart home appliances. Consumer products companies will get a massive revenue boost thanks to the higher selling prices of smart products

WHAT IS HAPPENING NOW?

WHAT’S HOT RIGHT NOW?THE INTERNET OF THINGS

The IoT will soon be at the crossroads of basically everything and will spark the advent of a smart, connected world allowing the remote monitoring of devices feeding Big Data and AI systems. In return, AI systems will make objects smarter

Starting as a simple tracking solution, the IoT now allows to extract and record a variety of data (speed, temperature, pressure, humidity) from an unlimited number of items: from consumer and industrial products to basic materials, food and drugs

The IoT will soon power smart homes, with digital assistants (Alexa) making the link between humans and machines

Smart factories will be another major field of application

Connecting every single object to the Internet. 80bn objects will be connected to the internet in 2020 vs 15bn today (Source: Idate Consulting)

WHAT’S HOT RIGHT NOW?AUGMENTED REALITY

Both Facebook and Apple are reportedly working on AR glasses and cameras

The upcoming iPhone 8 is believed to be Apple’s first foray in AR, with a camera expected to allow depth sensing, picture manipulation and virtual effects on images

Wide number of AR applications ranging from gaming to driving or shopping

A HUGE POTENTIAL AHEAD OF US

McKinsey Global Institute estimates the positive economic impact of technologies on global GDP ($80 trillion) in a range of 17%-41% by 2025

Reducing by 50% the number of years for major economies to double in size by 2035

Artificial Intelligence coulddouble economic growth over the next 20 years in 12 developed economies (Accenture)

PLAYERS

NEW PLAYERS KEEP POPPING UP

As the cost and complexity of technology keep going down, new players are coming from out of nowhere in many industries contributing to the global innovation effort as they come up with original ideas, products and business models… and putting continued pressure on the cost and complexity of technology.

After the GAFA (Google, Apple, Facebook and Amazon), the newcomers to the Tech world are the NATU (Netflix, Airbnb, Tesla and Uber).